Posts tagged: Oshkosh

Fire truck manufacturers face multiple antitrust lawsuits

Oshkosh, REV Group and Rosenbauer America are facing multiple class action lawsuits in the United States alleging a coordinated effort to inflate the price of fire trucks sold to municipalities.

Reuters reported that the latest case was filed on Friday 31 October by Newstead Fire Company in the Eastern District of Wisconsin, where two similar lawsuits are already pending.

Earlier complaints were lodged by the City of La Crosse, Wisconsin, and by Augusta, Maine, both naming the same defendants alongside the Fire Apparatus Manufacturers’ Association (FAMA).

The cases accuse the manufacturers of colluding through FAMA to exchange confidential economic data, limit production and raise prices in violation of federal antitrust law.

A federal judge has paused the litigation for sixty days to allow coordination among plaintiffs, with further filings expected.

Claims point to price rises and production limits

The lawsuits state that fire truck prices have doubled since 2015, with pumper trucks now averaging $1 million and ladder trucks exceeding $2 million.

Municipalities have reportedly been forced to keep ageing fleets in service longer, increasing maintenance costs and operational risks.

Plaintiffs argue that the manufacturers, which collectively control up to 80% of the US fire truck market, used their dominance to suppress supply and sustain elevated prices.

The complaints also cite “floating price” clauses that allowed suppliers to increase costs after orders were placed, adding further pressure on local budgets.

Companies and trade association deny wrongdoing

Oshkosh, REV Group and Rosenbauer America have each denied the allegations.

All three companies described the claims as meritless and said they were continuing normal operations.

Oshkosh stated that it was reinvesting in US facilities to meet record demand for new vehicles.

FAMA did not respond to Reuters’ request for comment.

Federal scrutiny and political attention

In April, Senators Jim Banks and Elizabeth Warren said consolidation driven by private equity investment had contributed to higher prices and longer delivery times across the US fire truck market.

They referenced a series of acquisitions of smaller manufacturers by private equity firm American Industrial Partners since 2006.

In May, the International Association of Fire Fighters urged the Department of Justice and the Federal Trade Commission to investigate competition issues within the fire apparatus sector.

The agencies have not commented publicly on any ongoing reviews.

Allegations detailed in Newstead complaint

The Newstead Fire Company complaint alleges that Oshkosh, REV Group, Rosenbauer America and FAMA engaged in a long-term price-fixing conspiracy beginning in 2016.

It claims the defendants used FAMA’s internal data reports and meetings to coordinate output and monitor competitors’ pricing decisions.

The suit seeks treble damages, legal costs and a permanent injunction against the alleged practices.

The filing also states that delivery delays have reached more than four years in some areas and that the resulting financial strain has diverted public funds from other safety priorities.

Relevance for fire and safety professionals

Procurement officers and fire chiefs responsible for vehicle acquisition could face direct implications if the alleged price-fixing is proven.

Extended delivery times and higher costs for new apparatus may affect fleet renewal planning, compliance with modern safety standards and equipment reliability during operations.

Budget managers in municipal and industrial fire services may need to reassess procurement schedules if litigation outcomes influence contract pricing or supply availability.

Manufacturers, distributors and trade bodies involved in the production or sale of emergency vehicles will be observing the case closely for potential changes to data-sharing and antitrust compliance practices across the wider sector.

This article was informed by information from the following source[s]: Reuters, United States District Court Eastern District of Wisconsin (Green Bay Division)